The downturn is good for Manchester and Stansted airports, owner says

The owner of Britain’s Manchester and Stansted airports said passenger numbers should jump next year as travelers switch to the low-cost flights in which the hubs specialize. Manchester Airports Group sees flyers increasing to 59m in 2023 from about 54m this year, CEO Charlie Cornish said. That’s just 3m, or 5%, below the total in 2019, before the coronavirus outbreak upended global air travel. MAG expects to gain momentum from discount carriers splurging on capacity as the economic slump pushes people to switch to cheaper travel options. Ryanair Holdings Plc, Europe’s biggest no-frills airline, is targeting gains in market share and counts Stansted as its largest base. Manchester also hosts the Irish carrier as well as EasyJet, Jet2 and tour operator TUI AG. “We’ve got a high proportion of low-cost airlines, which will definitely help,” Cornish said. “People will trade down. They won’t fly longhaul but they may fly Ryanair, EasyJet and Jet2 for their low fares.” By 2024, he said, passenger numbers should be “well ahead” of pre-Covid levels. The optimism at MAG, which also owns East Midlands Airport, contrasts with a gloomier outlook at London Heathrow. John Holland-Kaye, CEO of Britain’s biggest hub, doesn’t expect demand to return to 2019 levels until 2025 or 2026. Heathrow relies much more on business travel, which has yet to fully return, especially on the long-haul routes in which it specializes, and hosts none of Europe’s major discount airlines. The airport has forecast total passengers of 62m this year, still down 23% on 2019’s 81m. The October number was equivalent to 84% of the pre-Covid level, compared with 93% at MAG.<br/>